6.3 Resolution No. 23-8106 Banking ServicesAGENDA SECTION
NO:
ITEM
NO:
Page I
ITEM: Resolution 23-8106
CITY OF SALINA
REQUEST FOR CITY COMMISSION ACTION DATE TIME
02/06/2023 4:00 P.M.
ORIGINATING DEPARTMENT: I FISCAL APPROVAL:
A
3
Finance/Administration
BY: Debbie Pack, Director
BY:
IAQj/t1�_ IkJOI%LSI
BY:
Resolution Number 23-8106, designating official depositories for city funds, providing authority for wire
transfers, providing for authorization of check signers, and authorizing securities purchases and sales.
Authorize the City Manager to execute an agreement with Equity Bank to provide banking services for
the City of Salina.
BACKGROUND:
Resolution No. 23-8106
K.S.A. 9-1401 directs the governing body of any municipality to designate by official action the banks,
savings and loan associations and savings banks which shall serve as depositories of the governing
body's funds and the officer and official having the custody of such funds shall not deposit such funds
other than at such designated banks, savings and loan associations and savings banks. The banks,
savings and loan associations and savings banks which have main or branch offices in the county in
which all or part of the municipality is located shall be designated as such official depositories if the
municipality can obtain satisfactory security.. This action is required for all funds of the City, including
operating accounts and investments.
The last time the City adopted a designation resolution was on November 25, 2019 under Resolution
19-7773 (attached). On May 17, 2021 Equity Bank merged with American State Bank. In order to update
the designation of depositories for the City, staff is recommending the adoption of Resolution 23-8107
which replaces American State Bank with Equity Bank as an official depository for the City.
Banking Services Agreement
In October, 2022, the City of Salina sent out a Request for Proposal (RFP) for Banking Services
(attached) which included, but was not limited to, operating accounts, subsidiary accounts, on-line
banking, lock box services, and purchasing card services. The RFP was sent to all local financial
institutions, was posted on the City's website and a notice was published in the Salina Journal.
The City received proposals from four (4) institutions. An evaluation team consisting of the City
Manager, Deputy City Manager, Assistant City Manager, Director of Finance, Deputy Director of
Finance and Director of Continuous Process Improvement evaluated the proposals based on the
proposed scope of services, the experience, expertise and qualifications of key banking personnel, and
financial strength and stability of the bank. With the assistance of the City's financial advisor, the team
also evaluated the financial structure of the proposals.
The team found that all proposals met the specifications and all respondents were highly qualified
institutions that could meet the needs of the City.
The RFP itemized the banking services the City was requesting and the banks provided their ability to
perform these services, as well as, the fees associated with each service.
CITY OF SALINA
REQUEST FOR CITY COMMISSION ACTION DATE TIME
02/06/2023 4:00 P.M.
AGENDA SECTION ORIGINATING DEPARTMENT: FISCAL APPROVAL:
NO:
BY:
ITEM Finance/Administration FINAL APPROVAL:
NO:
Page 2 BY: Debbie Pack, Director BY:
In order to achieve a waiver of banking service fees, some banks proposed a minimum balance be held
that was either non-interest bearing or would receive a 1 % credit to offset fees.
In addition, banks provided a proposed rate of return on the City's deposits. Each rate of return was
expressed relative to an index or flat rate proposed by the bank. The indexes varied between the Kansas
Municipal Investment Pool rate and the Federal Funds rate. The banks proposed varying discount rates
relative to their proposed index for example, index less 20 basis points, index less 80 basis points, etc.
Staff consulted with our financial advisor about the various proposed indexes, the past performance of
those indexes and whether it was likely that there would be significant deviations in the performance of
one index relative to another. Staff concluded that the indexes being utilized were standard in the
banking world and that as one index fluctuated, the others would fluctuate similarly.
In order to develop an objective comparison of the various proposals, staff developed a standard
scenario to quantify the anticipated interest earnings and deduct service charges (when applicable) to
arrive at a net annual financial value for each proposal based on the predetermined standardized
assumptions.
The attached Analysis of Banking Proposals table provides a side-by-side comparison of the proposals
received noting the deposit amount and earnings conditions proposed, calculating the annual interest
that would be earned, deducting annual fees incurred and providing a final net value of each proposal
based upon their proposed index on 11/21/22. As staff is being more aggressive with investment of idle
funds, an overnight balance of $25,000,000 was utilized for this comparison.
From their extensive review of the proposals and comprehensive financial impact analysis, the
evaluation team is recommending that the City of Salina enter into a three year banking services
agreement with Equity Bank
FISCAL NOTE:
The financial impact of this action will be the cost of banking fees, as well as, the earnings on the City's
idle funds as estimated in the attached spreadsheet. Actual performance will vary based upon
applicable bank fees, based on usage, and interest earned on the actual amount of funds on deposit
and applicable interest rate which will be calculated monthly.
CITY OF SALINA
REQUEST FOR CITY COMMISSION ACTION DATE TIME
02/06/2023 4:00 P.M.
AGENDA SECTION ORIGINATING DEPARTMENT: FISCAL APPROVAL:
NO:
BY:
ITEM Finance/Administration FINAL APPROVAL:
NO:
Page 3 BY: Debbie Pack, Director BY:
COMMISSION ACTION OR RECOMMENDED ACTION:
Staff has identified the following options for the City Commission's consideration:
Resolution 23-8106
1.) Approve Resolution No. 23-8106 designating official depositories for city funds, providing
authority for wire transfers, providing for authorization of check signers, and authorizing securities
purchases and sales and repealing Resolution No. 19-7773.
2.) Approve Resolution No. 23-8106 with amendments as the City Commission deems appropriate.
3.) Postpone consideration of Resolution No. 23-8106 to a specified date and time and provide staff
direction regarding additional information or amendments the City Commission would like to
request for their further consideration.
4.) Vote to deny Resolution 23-8106 resulting in the City not being able to contract with Equity Bank
for banking services.
Staff recommends Option #1.
Authorization for City Manager to execute banking services agreement with Equity Bank
1.) Authorize the City Manager to execute a banking services agreement with Equity Bank.
2.) Authorize the City Manager to execute a banking services agreement with Equity Bank with
amendments as the City Commission deems appropriate.
3.) Postpone consideration to a specified date and time and provide staff direction regarding
additional information or amendments the City Commission would like to request for their further
consideration.
4.) Vote to deny Authorization for City Manager to execute agreement with Equity Bank which will
result in staff having to either republish a banking services RFP, select another respondent or leave
our services with our current bank.
Staff recommends Option #1.
Attachments: Resolution No. 19-7773
Banking Services Request for Proposal
Analysis of Banking Proposals
Resolution No. 23-8106
Repeals Resolution No. 04-6072
RESOLUTION NUMBER 19-7773
A RESOLU>eION DESIGNATING THE OFFICIAL DEPOSITORIES FOR ALL MONEYS OF
THE CITY OF SALINA, KANSAS, PROVIDING AUTHORIZATION FOR WIRE
TRANSFERS, DESIGNATING AUTHORIZED CHECK SIGNERS, AUTHORIZING
SECURITIES PURCHASES AND/OR SELL AND REPEALING RESOLUTION NUMBER 04-
6072.
WHEREAS, K.S.A. 9-1401 requires that all municipalities designate by official action, all eligible
depositories of the governing body's funds,
WHEREAS, K.S.A. 9-1401 also states that banks, savings and loan associations and savings banks
which have main or branch offices in the colony in which all or part of the municipality is located shall
be designated as such official depositories, and
WHEREAS, Bennington State Bank, UMB Bank, Sunflower Bank, The Bank of Tescott, Central
National Bank, Solomon State Bank, Capitol Federal Savings, Bank VI, American State Bank, First
Bank Kansas, and Exchange Bank are all authorized depositories for municipal funds, and
WHEREAS, the City Manager, Deputy City Manager, Finance Director and Deputy Finance Director
are responsible for the daily fmancial operations of the City of Salina; SO NOW, THEREFORE
BE IT RESOLVED by the Governing Body of the City of Salina, Kansas:
Section 1. That all public moneys received by the City of Salina be deposited in Bennington State
Bank, UMB Bank, Sunflower Bank, The Bank of Tescott, Central National Bank, Solomon State
Bank, Capitol Federal Savings, Bank VI, American State Bank, First Bank Kansas, or Exchange
Bank, all of which are authorized depositories of municipal funds, located in the City of Salina,
Saline County, Kansas.
Section 2. That the City Manager, Deputy City Manager, Finance Director, Deputy Finance
Director and Human Resource Director are authorized to approve ACII and wire transfer payments
on behalf of the City of Salina.
Section 3. That the City Manager, Deputy City Manager, Finance Director and Deputy Finance
Director may authorize check signers and access to the various accounts required by the City of
Salina.
Section 4. That the City Manager, Deputy City Manager, Finance Director and Deputy Finance
Director are authorized to approve the purchase and/or sell of securities for the account of the City
of Salina.
Section 5. That Resolution Number 046072 is hereby repealed.
Adopted by the Board of Commissioners and signed by the Mayor this 25"1 day of November, 2019.
�E
(SEAL) Trent W. Davis, M.D., Mayor
ATTEST:
Wile
Shandi Wicks, CMC, City Clerk
DATE: October 26, 2022
TO: Prospective Financial Institutions
The City of Salina is requesting competitive proposals from firms qualified to provide BANKING
SERVICES.
Proposals must be received no later than
4:00 PM, TUESDAY, NOVEMBER 22, 2022
Submit one (1) original signed proposal to:
City of Salina
Request for Proposal — Banking Services
Attn: Debbie Pack
300 West Ash Street, Suite 206
Salina, KS 67402-0736
Submit one (1) electronic proposal to:
Debbie. pack(a salina.org
Said proposals must be clearly labeled — RFP — BANKING SERVICES
Questions concerning this RFP should be directed to Debbie Pack, 785-309-5735 or
Debbie. pack( salina.org.
Late proposals will be rejected and returned unopened.
Sincerely,
Debbie Pack
Director of Finance and Administration
Cityof ti
CONTENTS
AFFIDAVIT
I. GENERAL BACKGROUND
II. MINIMUM QUALIFICATIONS
III. SCOPE OF SERVICES
IV. REQUIRED BANKING SERVICES
V. OPTIONAL BANKING SERVICES
VI. OTHER VALUE-ADDED BANKING SERVICES
VII. PROPOSAL SUBMISSION PROCESS AND DEADLINES
VIII. PROPOSAL REQUIREMENTS
IX. FORMAT FOR SUBMISSION OF PROPOSAL
X. REQUESTS FOR INFORMATION
XI. EVALUATION OF PROPOSALS
XII. PROPOSAL SCHEDULE
XIII. CONTRACT REQUIREMENTS
EXHIBIT A: APPLICATION TO ACT AS DEPOSITORY
EXHIBIT B: REQUIRED SERVICES
EXHIBIT C: OPTIONAL SERVICES
EXHIBIT D: OTHER VALUE-ADDED SERVICES
AFFIDAVIT
I, ________ (Name of Individual) of the City of
County of State of _------ , being duly
sworn on her or his oath, deposes and says:
That I am the — (Title) of
(Firm Name), and have been
authorized by said firm to make this affidavit on its behalf;
2. No officer, agent or employee of the City of Salina, Kansas is financially interested,
directly or indirectly, in what firm is offering to sell to the City pursuant to the Request
for Proposals;
or
The following officer(s), agent(s), or employee(s) of the City of Salina would be
financially interested in or receive a benefit from the profit or payments of any contract,
job work, or service provided to the City of Salina: (list all such officers, agents, or City
employees on a separate sheet);
(Affiant shall line through the statement which does not apply; failure to line
through one statement shall disqualify the proposal).
3. If firm were awarded any contract, job work, or service for the City of Salina, Kansas, no
officer, agent or employee of the City would be financially interested in or receive any
benefit from the profit or payments of such;
or
The following officer(s), agent(s), or employee(s) of the City of Salina would be
financially interested in or receive a benefit from the profit or payments of any contract,
job work, or service provided to the City of Salina: (list all such officers, agents, or City
employees on a separate sheet);
(Affiant shall line through the statement which does not apply; failure to line
through one statement shall disqualify the proposal).
4. Firm has not participated in collusion or committed any act in restraint of trade, directly
or indirectly, which bears upon anyone's response or lack of response to this Request
for Proposals.
(Firm Name)
By:
(Signature)
---------------------------------
(Printed Name)
-------------------------------------
(Title)
----------------------------------
Mailing Address
-----------------------------------
City, State, Zip Code
Phone
Fax
Email Address:
Federal Tax I. D. #
IH
city of
Salina
I. GENERAL BACKGROUND
The City of Salina (the City) is requesting competitive proposals from eligible financial
institutions to act as the City's depository institution for the period of three years,
effective on March 1, 2023, or other date as determined between the City and financial
institution, with additional one-year renewal options. Eligible institutions must meet the
requirements of K.S.A. 12-1675 and meet the minimum qualifications as stated within
this Request for Proposals. Banking services and charges will be reviewed on an
annual basis to ensure the equity of the agreement for both parties. It is the intent of
the City to have one financial institution provide the banking needs for the City's main
operating account, and other minor City accounts and other banking services
described.
The intent of this Request for Proposal is to provide qualified financial institutions an
equal opportunity to submit proposals to handle the City's bank accounts and services.
Banking services not requested in this proposal will be negotiated between the City
and the selected bank if required at a later date.
MINIMUM QUALIFICATIONS
The following indicates the minimum qualifications and criteria for a bank's proposal to
be eligible for consideration and evaluation. Specific responses to each requirement
must be provided in your proposal.
• Be insured by the Federal Deposit Insurance Corporation (FDIC).
• Be eligible to be a depository of City funds pursuant to K.S.A. 9-1401 and 9-
1408, et seq., as amended with full-service branch in or near Salina. All
responding banks must complete Exhibit A.
• Be an online cash and securities member of the Federal Reserve.
• Be able to provide 100% collateralization of all City deposits with collateral in
compliance with the City Investment Policy.
5
City of
Salina
Provide credit information from a nationally recognized rating organization such
as Moody's, Standard & Poor's, etc.
Have the capacity of providing all Required Banking Services internally. The
City prefers that the responding bank provide services without the use of joint
ventures, consortiums, or contract service providers because of control issues.
The City will determine the acceptability of any arrangements with the objective
of the RFP being the total solution.
• Maintain a financial institution bond, Form 24 or equivalent, with a limit of not
less than $3,000,000 banker's professional liability in the amount of $2,000,000
per occurrence/annual aggregate and valuable paper coverage.
• Branch locations within the City limits of Salina, Kansas.
III. SCOPE OF SERVICES
Details of the services to be provided to the City are separated into three categories.
1. Required Banking Services
These services are listed in Section IV and in Exhibit B and must be provided by
the selected bank.
2. Optional Banking Services
These services are listed in Section V and in Exhibit C, and the City may desire
to use them depending on the availability and price of the services offered.
However, the City may award a contract for these services to a separate bank(s)
besides the main depository that is awarded the contract for required services in
Section IV above. Proposals are not required to address any optional services
in order to be considered an acceptable proposal.
City &
J
Salina
3. Other Value -Added Banking Services
These are services not otherwise identified in this RFP that the proposing bank
may offer to the City. Please submit your proposal on Exhibit D for any
additional services that you wish the City to consider. Include all necessary
attachments, fees and discussion materials to clarify the services being offered.
IV. REQUIRED BANKING SERVICES
All proposals must include the following services, which will be required in the City's
Banking Services agreement. Proposing Banks must submit a completed Exhibit A
and Exhibit B with the proposal.
1. Account Structure
The City will require this to be an interest-bearing checking account. All of the
City's operations will flow through this account, including the deposit of
revenues, accounts payable payments, payroll and investment purchases and
maturities. The City will send and receive wire transfers and ACH transfers,
write checks, and make deposits to this account. The City requires the ability to
access real time detailed information of all incoming ACHs and wires for this
account at no cost to the City.
The following chart describes the frequency of various activities that will be
processed in this account.
Item
Frequency
Accounts Payable Checks
Weekly
Deposits
Daily
Payroll
Every two weeks
Investment Purchases
As Needed
Investment Maturities
As Needed
ACH Debits/Credits
As Needed
Cityof
Salina
2. Access to Records
The depository bank shall allow reasonable access to the Finance Director,
Finance staff, the City's independent auditors and federal auditors to examine
records relating to the use of City funds. In the response, please provide
information about this service, including all costs.
3. On -Line Treasury Management
Describe in detail your online communication capabilities for balance inquiry
including immediate and delayed clearing balances, item image retrieval, wire
and ACH transfer initiation, stale dated check management, stop pay
management, exception item review using positive pay, safekeeping data and
investment performance reporting, and any other online information that will be
available to the City. In addition, please describe the training available and
appropriate controls regarding the City's accounts using online access. Finally,
indicate the hardware/software requirements necessary to run the access
program.
4. Deposit Slips
Two-part, pre -numbered deposit slips will be required, as well as self -inking
endorsement stamps for the following departments: Municipal Court, Water
Customer Accounting, Planning and Development Services, Fire, Finance,
Police, Parks and Recreation, Landfill, Arts and Humanities.
5. Locked Bank Bags
Provide locked bank bags to be placed in a night drop or used by a courier. The
bank will open these bags, verify the amount(s), make the deposit(s), and send
a copy of the deposit slip to the City.
6. Lockbox Services
The City of Salina does not currently have a lockbox account, but wishes to add
one for the Utility Billing.
The successful vendor will perform the following processes for items sent to the
lockbox location:
a. Collect and open mail from lockbox location at various times each business
day.
b. Compare remittance documents to the accompanying check for amount
verification.
c. Endorse all checks contained therein.
W
City of
Salina
d. Deposit such checks into the account in one lump sum for the day.
e. Email the deposit information to the City's designee.
f. Processed documents, deposit slips and other mail not containing checks
will be delivered to City designee each business day.
g. Provide online access to imaged lockbox documents (statement stubs and
checks) allowing immediate access to processed items.
7. ACH Collections
The City operates a water and sewer utility with approximately 21,000
customers. Customers shall have the opportunity to make direct payments by
ACH for their monthly fees. Please describe your services in this area.
8. Remote ACH Check Deposit Service
The City currently receives a substantial volume of check payments over the
counter at cashier operations in City Hall, Municipal Court, the Police
Department, and Parks & Recreation offices, and in other areas. With the
implementation of Remote ACH Check Deposit Service, it is anticipated that the
operating bank can accept quality images of checks in file format over the
internet and collect payment of these checks via image presentment as an
alternative to receiving the checks via armored car. Please describe the service
that is available to the City and clearly define costs and implementation
procedures including equipment requirements. Also, describe the latest deposit
time for the file to be transmitted to the bank and what checks if any that cannot
be converted to the image deposit format.
9. Availability of Funds Deposited
What is the collected funds availability schedule for the City's deposits? These
deposits include checks, credit cards, money orders, cash, ACH credits and
wires from local, regional, and out of state banks. The City requires updates as
the schedule changes. Also, describe the latest daily deposit time for fastest
availability on deposits including deposits made using file transmissions of
check images.
9
City of
Salina
10. Returned Checks
All deposited checks that are returned will be sent back to the City and
processed against the City's account. The City desires to have a second
presentment of the check for any NSF checks that are deposited. As an option,
the NSF check can be converted to ACH and presented for payment rather than
a second presentment of the check. Please provide information about this
service, including all costs.
11. Payee Positive Pay and Automated Account Reconciliation
The City requires the use of a payee positive pay account reconciliation and
fraud prevention program. As checks are disbursed, the City will provide the
bank with computer readable record file detailing the payee, check number, date
and dollar amount of each item. Only those items reported by the City will be
allowed to clear the account. The bank shall provide the City a daily list of
exception items for payment approval or rejection. The City requires that the
exception items not be paid as the automatic default. Describe your system and
how stale checks will be handled, and include information regarding the
requirements for the electronic file, such as format, etc.
Please also describe any ACH Positive Pay services or other fraud prevention
options your offer.
At the end of each month, the Positive Pay account reconciliation shall consist
of outstanding items. The City requires information be provided electronically to
reconcile its accounts. The electronic file shall be in the standard CSC (comma
delimited) format for interfacing with the City's financial system. Information is
expected to be received within three business days of month-end and shall
contain the date, bank account number, check number and amount.
Responding banks should describe their systems and how stale dated checks
will be handled. The City requires that the payee positive pay program be
integrated with the bank teller operations to maximize controls. In the response,
please describe the status of the online teller access.
12. Check Clearing Account
In the past, the City has not utilized a zero -balance check clearing account. If
proposing the City of Salina to utilize such an account, detail benefits, costs
10
City of
Salina
associated with the account and the cost savings the City could realize from
using such an account.
13. Cancelled Check Safekeeping
Please describe your cancelled check safekeeping to include image recovery for
processed checks.
The bank shall provide a monthly electronic data set containing information of all
checks cleared by the bank. These data sets shall be furnished for dates from
the first day of the month through the last day of each month and shall include
the following information: check #'s paid; date cleared; and amount. The
cancelled checks or check images shall be returned monthly in numerical
sequence by check number on or before the fifth working day of the following
month.
14. Electronic Vendor Payments (ACH or VISA Network)
The City currently pays some of its vendors electronically and desires to expand
its use of this form of payment. Please describe any electronic payment system,
with cost structure, your bank provides and the bank plans for expanding the
service.
15. Debit Blocks and Filters
The City requires the ability to place Debit filters and blocks on all accounts to
minimize the potential of fraudulent withdrawals. Please describe your program
and all costs associated with implementing filters and blocks.
16. Employee Pay
The bank must have the ability to provide direct deposit employee payroll using
ACH payments. Please describe your ACH services. What is the deadline to
receive direct deposit payroll (ACH) information to ensure that it will be credited
to the employees account first thing Friday morning? For those employees that
do not utilize direct deposit, the bank must be capable of providing pay cards
11
Cityof
Salina
that can be used by the employee to access their pay. Please provide details
on this program's cost and transaction limits. An optional use for these cards
may be for emergency travel and cash advances.
17. Purchasing Cards
In 2022, the City had roughly 120 purchasing cards outstanding with a
transaction volume of approximately $1.0 million. The City will need to receive
transaction data in a format that can be sent to the purchaser for review and
approval.
Please describe your program, including all costs, fraud management, rebate
matrix, accounting information to be provided to the City, reporting capabilities,
Internet capabilities, card formats, controls for the use of the cards,
reconciliation process, etc. Attach a copy of your bank's contract for this
service.
18. Collateral
Pursuant to K.S.A. 9-1402, as amended, the bank is required to collateralize
City deposits. The City Investment Policy requires that pledged securities have
a market value equal to at least 100% of the amount of the total deposits of
public funds, including accrued interest earned. Under the City's investment
policy, the following items are considered acceptable collateral:
1. Direct obligations of, or obligations insured as to principal and interest by, the
United States Government or an AAA rated agency thereof, and obligations
and securities of United States sponsored AAA rated corporations, which
under federal law may be accepted as security for public funds.
2. Surety bonds, issued by a AAA rated insurance company as determined by a
nationally recognized insurance rating agency, licensed to do business in the
State of Kansas. Surety bonds are subject to review and approval by the
City's Finance Director.
3. Letters of Credit issued by the Federal Home Loan Bank.
4. Bonds of the State of Kansas.
If the bank chooses to pledge securities as collateral, the bank will be required
to pledge the securities at the Federal Reserve Bank or at the Federal Home
12
City of
Salina
Loan Bank and execute a Security Agreement with the City giving control of the
securities to the City.
19.Other Required Information
a. Daylight Overdrafts
Please provide details on any daylight overdraft issues that may concern
your bank. It is possible that in managing the investment program of the
City that payment for an investment purchase may occur before the
receipt of funds from an investment sold or matured or from other
sources. This could cause an occasional daylight overdraft that will be
resolved before the end of the banking day.
b. Designated Account Liaison
The City will require the selected bank to designate a senior officer as a
liaison. This officer must be capable of coordination of all City activities
with the bank and be able to resolve any problems or issues that may
arise. Biographical information must be included on all key bank
personnel that will be assigned to service the City.
c. Record Retention
The bank should maintain records for the City for the term of seven years
after the completion of the contract.
d. Disaster and Back-up Plans
Describe your bank disaster and back-up plans and capabilities. The City
must have access to cash, securities, and information always.
e. Statements
The City requires monthly statements on all its accounts. The cut-off for
these statements will be the last day of each month. These statements
shall be readily available no later than the 3rd business day after the end
of the month.
f. Wire Transfer of Funds
The City wire transfers funds to other banks. This service will be
provided on the request of any approved City bank account designee
(using electronic, telephonic, email, and/or written requests). Online
submission is preferred — all other methods exist for backup. In order to
maintain audit controls, the bank will provide written instructions to follow
when wire transfers are requested by telephone. What is the cut-off time
for the City to submit wire transfer information and have it
13
cityof
Salina
processed on the same day?
Any money received directly at the financial institution by wire transfer of
US Treasury, State of Kansas funds, or other financial institutions will be
reported to the City's Finance Division immediately by telephone or email.
The financial institution will then provide the City with a deposit slip or
credit advice of the transaction.
g. Bank Charges
Charges for services and supplies provided by the bank will be directly
deducted from the City's bank account. The bank will provide a detailed
invoice to the City prior to deduction.
h. Investments
The City reserves the right to invest in time deposits, demand accounts
(money market), US Treasury bills or notes, government agencies or
repurchase agreements through other financial institutions if such action
is to the benefit of the City.
L Interest Income
All account(s) will be interest bearing accounts and are not to go below
the bank's normal savings account rate. Financial institutions are
required to state in the proposal the interest rate offered, including the
index used and the index's effective interest rate, specifically, the rate
given to the City based on the number of basis points above or below the
index.
If an interest-bearing account is proposed for the automatic sweep
product for the investment of end -of -day balances, please provide
information on any FDIC charges on the bank account and describe the
current FDIC charges. The proposal should also include all options
available to public entities under Kansas statutes considering the City has
expanded investment authority. Include your bank's earnings history for
July 1, 2021 — June 30, 2022, earnings benchmark and all costs.
Indicate which sweep investments option the bank recommends for the
City and why it should be selected.
j. Additional Services
The City may request additional services not specifically mentioned in
this RFP with a mutually agreeable fee to be charged by the bank. If the
bank wishes to offer the City additional services not otherwise specified in
14
City of
Salina
this request for RFP, a description of these services, including unit costs, if any,
should be included in the proposal.
V. OPTIONAL BANKING SERVICES
The City requests the proposing banks offer any optional services or make any
recommendations it believes would enhance the cash management capabilities of the
City. All proposing banks are encouraged to make suggestions or provide additional
information not requested in this proposal. Banks are encouraged to describe factors
that distinguish their institution from potential competitors. However, all respondents
must submit a proposal on all required services in the proposal format provided.
Optional services should be summarized on an attached Exhibit C, but can be
accompanied and supported by other material. The City may elect to use some or all
of the optional services, but not necessarily with the primary operating bank. The City
may elect not to award a contract for any or all of the optional services to any banks.
1. Courier and Armored Car Services
The City deposits cash and checks daily. At the present time, the City has a
contract with an armored car service to pick up the daily deposit from City Hall,
and other City facilities and deliver it to the bank. Please describe if you bank
provides a service to include pick-up and subsequent deposit times for best
funds availability and define the costs. The City is evaluating whether to have
its own contract with an armored car service or to have the bank plan for
delivery and would like the opinion of the responding banks.
2. Check Issuance
The City currently processes vendor checks weekly. Please describe if you
bank has the ability to issue checks on behalf of the City for payments made to
vendors and suppliers, what this process looks like and include any applicable
fees.
VI. OTHER VALUE-ADDED BANKING SERVICES
Please describe any other banking services that your bank would be willing to offer by
summarizing and including attachments for review by the City.
15
City of
Salina
VII. PROPOSAL SUBMISSION PROCESS AND DEADLINES
One original signed proposal from interested banks must be received on or before
4:00pm on Tuesday, November 22, 2022 and addressed to:
City of Salina
Request for Proposal — Banking Services
Attn: Debbie Pack
300 West Ash Street, Suite 206
Salina, KS 67402-0736
One (1) electronic signed proposal must be received by debbie.pack(c salina.orq_on or
before 4:00 PM, November 22, 2022. Any proposal that is not received before the
deadline date and time will not be considered. The City reserves the right to accept or
reject any and all proposals, to waive technicalities or irregularities involving any
proposal.
Proposals will be time -stamped upon receipt and held in a secure place until the
established due date. A record of proposals will be established, which will include for
all proposals, the following information: the name of the entity submitting the proposal;
a description sufficient to identify the services offered; and, the date and time the
proposals were opened.
All proposals and related reference information submitted in response to this RFP will
become the property of the City and will not be returned to the respondent. Each entity
submitting a proposal waives any right of confidentiality as to the proposal documents.
If an entity submitting a proposal considers certain material in the proposal proprietary
information, it shall clearly designate those portions of the proposal it wishes to remain
confidential. As a public entity, the City is subject to making records available for
public disclosure. The City will attempt to maintain the confidentiality of material
marked proprietary; however, it cannot guarantee that information will not be made
public. Under no circumstances will any portion of a bidder's price proposal be
considered confidential.
The City reserves the right to (1) accept or reject any and all proposals and to waive
any technicalities or irregularities involving any proposal and to cancel the RFP
process at any time prior to entering into a formal contract for banking services, (2) not
award a contract for any or all of the banking services that are the subject of this RFP
process, (3) award contracts for banking services to separate banks, (4) negotiate
contract terms acceptable to the City with the successful bank(s), (5) disregard all
16
city of
Salina
nonconforming, nonresponsive or conditional proposals and (6) reject the response of
any bank which does not submit a proposal to the City's satisfaction.
All proposals must be signed by a duly authorized individual, and the affidavit
completed, signed and notarized (Page 3-4).
During the evaluation process, the City reserves the right to request additional
information or clarifications from those banks submitting proposals and to allow
corrections of errors and/or omissions. Oral presentation may be required prior to
selection; notification will be given if such meetings are required.
Submission of a proposal indicates acceptance by the company submitting the
proposal of terms, conditions and specifications contained in this RFP and to include
the contract requirements set forth herein.
The City will not pay for any information herein requested, nor is it liable for any costs
incurred by those banks submitting proposals. The City reserves the right to select the
proposal that will best meet the needs of the City. Proposals that do not meet the
stated requirements will be considered in non-compliance and will be disqualified
unless the City waives such non-compliance.
All proposals must remain in effect for 120 days after the proposal due date.
By submission of a proposal, each entity submitting a proposal certifies that:
1. It has not paid nor agreed to pay any person(s), other than a bona fide
employee, a fee or a brokerage fee resulting from award of the contract.
2. The City may, by written notice to the entity submitting the proposal, reject the
RFP or cancel any award under this RFP if it is found by the City that gratuities,
in the form of entertainment, gifts or otherwise were offered or given to any
representative of the City with a view toward securing an order or other
favorable treatment with respect to this RFP or the entity submitting the proposal
participated in collusion with another entity to restrain or eliminate competition.
3. The contents of this RFP and any clarifications distributed or issued by the City
shall become part of the contractual obligation and incorporated by reference
into the ensuing contracts as the City deems appropriate.
All proposals must be submitted in a sealed envelope or box on or before the time
specified herein. No proposals shall be opened until after the time specified for
proposal submission. No proposal will be opened if submitted after the time specified
17
city of
Salina
herein for submittal of proposals. No public proposal opening will be held. All
proposals will remain confidential until a selection is made or until all proposals are
rejected.
Those entities whose proposals meet the requirements of this RFP may be
interviewed.
VIII. PROPOSAL REQUIRMENTS
1. Proposals must include all required services as set forth in Section IV herein.
2. Proposals must be submitted in the format provided in this RFP, including the
use of appropriate exhibits.
3. An individual having full authority to execute the proposal and to execute any
resulting contract for services must sign each proposal, including Exhibit A.
4. The following bank profile data is required in each proposal:
■ The year 2021 financial statement or most recent 12 -month ending period
must be included.
■ Identification of the three largest owners of the bank.
■ Description of how the City would rank relative to other customers of the
bank in relationship to size and complexity of service.
5. Each proposal shall include resumes of key management and staff members
that would be assigned to the account.
6. Each proposal shall include an organizational chart depicting the various
departments, including contacts that would be involved in the City relationship.
7. Each proposal shall provide information regarding the proposing entity's
community involvement within the City of Salina.
8. Each proposal shall include a list of names, addresses, phone numbers and
email addresses for three customers of similar size and complexity to the City's
requirements, including the name of a contact person.
9. Each proposal shall address the method of compensation to include the
following:
■ The City requires that a monthly account analysis be presented within ten
days from the cut-off date. The account analysis must show a minimum of
the following information:
o Account number
o Period covered
o Average ledger balance
o Average collected balance
o Services rendered to include type of service and quantity
o Per unit charge for each service per the banking agreement
IN
city of
Salina
o Extended charges of each type of service provided
o Total monthly charges of all services provided
The City will make payment for bank services as follows:
o By withdrawal from operating account
All charges shall be in conformity with those specified in the Banking Service
Quotation Forms Exhibit B, C and D.
10. Each proposal shall include the statement and contract drafts required by
Section XIII of this RFP.
Additionally, please address the following with your proposal:
1. Is the financial institution a member of the Federal Reserve System and insured
by the FDIC?
2. State how and where the bank/local branch is chartered (federal or state). If
chartered by a state, identify the state the bank/local branch is chartered under.
Provide list of locations available to the City.
3. Provide credit information from a nationally recognized rating organization such
as Moody's, Standard & Poor's, etc. Discuss current FedFis (or equivalent
service) rating published effective for the most recent quarter available and
provide the pertinent information regarding financial strength and stability
expected during the term of this proposed banking services contract.
4. Is the financial institution audited by an independent CPA firm? Please provide
a copy of the most recent audit report.
5. Please submit your bank's most recent Call Report.
6. Provide your bank's Capital Ratio and Risk Based Capital Ratio for the past
three (3) years.
7. Provide a summary of any significant changes in management during the past
five (5) years. Include any recent or anticipated mergers or acquisitions.
8. Indicate whether your institution will provide the following services and at which
location these services will be handled:
a. Daily deposit of City funds
b. Processing of federal withholding of tax deposits
c. Coin counting services as needed
d. Receiving of customer utility payments (lockbox)
e. Certification of availability of funds for bond and interest payments to the
State Treasurer's Office as requested by the City.
19
cityof
Salina
9. Provide interest rate history on your institution for both interest-bearing checking
accounts and public fund money market accounts for the last two (2) years.
How often are these rates reviewed for changes?
10. Completion of the charges for banking services listed on Exhibit B.
11. Will the fees quoted in the proposal remain firm during the entire contract
period? If no, for what period will your fees remain firm? What are the criteria
and frequency for adjusting your fees?
12. State that the proposal submitted shall be binding upon the financial institution
for 120 days from the submission date and that the individual signing proposal is
authorized to make such a commitment.
IX. FORMAT FOR SUBMISSION OF PROPOSAL
In order to simplify the review process and obtain the maximum degree of comparison,
proposals must be organized in a standard format. The following outline indicates
organization which will provide information necessary for the processing of the
proposal.
1. Title Page: Indicate the name of the institution, local address, telephone
number, name of the contact person, and the date.
2. Table of Contents: Include a clear identification of the material by section and
page number.
3. Letter of Transmittal: Limit the letter of transmittal to one or two pages. Briefly
state the institution's understanding of the services to be performed and state
the names of the persons who will be authorized to make representations for the
institution. Also, state the person signing the letter is authorized to bind the
institution.
4. Profile and Qualifications of the Institution: Include responses to all required and
additional services as described with the Request for Proposal. State the
location of the office (or offices) from which the various services are to be
performed, identify the personnel who will work on the City's activity, and give
the names and telephone numbers of client references for which similar services
are provided.
5. Fees: Complete Exhibit B for calculating fees. Alternate fee proposals may be
provided for the City's consideration. This should contain the estimated annual
fee based on the projected activity shown. The City has the option of choosing
the method most advantageous to them.
6. Additional Section: Since the preceding sections are to contain only data that is
specifically required, any additional or supplemental information considered
all
City of
Salina
essential to the proposal shall be included in this section. If there is no additional
data or information to present, state, "There is not additional data to be presented."
X. REQUESTS FOR INFORMATION
All request for information and questions regarding this RFP must be forwarded in
writing or via email (Debbie.packaa salina.org) no later than 1:00 pm on Friday,
November 11, 2022 to:
City of Salina
Request for Proposal — Banking Services
Attn: Debbie Pack
300 West Ash Street, Suite 206
Salina, KS 67402-0736
By 5:00 pm on Tuesday, November 15, 2022 responses to questions will be provided
to entities requesting responses and to all known proposers. The responses will also
be posted as an addendum to the RFP on the City's Website at this time or available
upon request.
XI. EVALUATION OF PROPOSALS
Proposals will be evaluated by the City of Salina utilizing the criteria set forth below.
The City staff will make a recommendation to the entire Governing Body based upon
this analysis. All proposals submitted will be the primary document upon which each
proposal will be evaluated. All proposals will first be screened to determine minimum
institution qualifications as outlined in this RFP. Proposals that do not meet these
minimum requirements will automatically be rejected and shall not undergo further
evaluation.
Submitted proposals will be judged on the following evaluation criteria:
1. Scope of proposed services.
2. Cost of services and effectiveness of total services performed.
3. Experience, expertise and qualifications of key bank personnel assigned to the
City.
4. Financial strength and stability of the bank.
5. Value of any new products or services suggested.
6. Quality level of services to be performed and proposed approach to cost control,
service level monitoring and administration.
7. Clarity, completeness and timeliness of information provided for evaluation to
the City.
21
XII.
K/ 111
8. Quality of any in-person interview with the City's selection committee.
City of
Salina
9. Responses to reference checks.
10. Distance from City locations needing to make deposits to depository locations.
11. Number and locations of branches and services provided at each branch.
In addition to the banking institutions' services, please provide the following:
■ A list, including address and zip code, of all banking locations, including affiliates
and/or subsidiaries, located within the city limits of Salina, Kansas, and the
services provided at each location.
Are there any other reports the Respondent bank routinely prepares and
distributes that provide information regarding any such programs as listed
directly above that would be available to the City?
The City reserves the right to utilize other appropriate selection and evaluation criteria
as it deems necessary.
PROPOSALSCHEDULE
Event Deadline
Distribution of Requests and Publication October 26, 2022
Questions Regarding Proposal Due 1:00 pm November 11, 2022
Responses to Questions Distributed and Posted by 5:00 pm November 15, 2022
Proposals Due 4:00 pm November 22, 2022
Evaluation/Interview/Facility Visitation Period December, 2022
Contract Signed by January 15, 2022
Expected Implementation Date March 1, 2023
Please note that these dates are anticipated and are subject to change.
CONTRACT REQUIREMENTS
All banks submitting proposals in response to this RFP must include in their proposal
drafts of contracts for those banking services included in each proposal:
1. Security Agreement
2. Pledge and Custodial Agreement
3. Treasury Management Services Agreement
4. Wire and ACH Transfer Agreement
5. Other Agreements that the City will be required to execute
22
City of
Salina
The award of any contract for banking services pursuant to this RFP process is
contingent upon the bank(s) receiving the award and successfully negotiating a
contract for those banking services with the City. In the event the selected bank(s)
will not execute an agreement that satisfies the contract terms required by this Section,
or the City is unable to negotiate a contract it deems acceptable with the selected
banks(s), the City may withdraw its award for banking services with the selected
bank(s) and award its banking services to the next most qualified bank, or the City may
call for new proposals at its option.
The following contract terms must be included in all contracts for banking services.
The City reserves the right to modify these contract terms by amendment, addition or
deletion as it deems appropriate.
RIGHT OF THE CITY TO TERMINATE AGREEMENT
a. Termination for Cause. Without in any manner limiting the right of the City
to terminate this Agreement or declare the BANK in default thereof for any
reason set forth herein or in the Request for Proposal documents, if the work
to be done under this contract shall be abandoned by BANK; or if this
Agreement shall be assigned by BANK otherwise than as herein provided; or
if the BANK should be judged as bankrupt; or if a general assignment of its
assets should be made for the benefit of its creditors; or if a receiver should
be appointed for the BANK or any of its property; or if at any time the City
determines that the performance of the work under this contract is being
unnecessarily delayed, that the BANK is violating any of the conditions or
covenants of this Agreement, that it is executing the same in bad faith or
otherwise not in accordance with the terms of said Agreement; then, in
addition to other rights the City may choose to exercise, the city may, at its
option, serve written notice upon the BANK of the City's intention to
terminate this Agreement, and, unless within ten (10) days after the serving
of such notice upon the BANK a satisfactory arrangement be made for the
continuance thereof, this Agreement shall cease and terminate unless the
City otherwise agrees to continue the Agreement. In the event of such
termination, the City shall immediately serve notice thereof upon the BANK,
and the City may take over the work and prosecute same to completion by
contract with another banking institution or otherwise and in such event the
City may take possession of and utilize in completing the work any and all
documents and other materials as may be necessary therefore. When
23
city of
Salina
BANK's services have been so terminated, such termination shall not affect
any rights or remedies of the City against BANK then existing or which may
later accrue. Similarly, any retention or payment of monies due BANK shall
not release BANK from liability.
b. Termination for Convenience. City reserves the right, in its sole discretion
and or its convenience and without cause or default on the part of the BANK,
to terminate this Agreement by providing sixty (60) days prior written notice
of such termination to BANK. Upon receipt of such notice from City, BANK
shall: (1) immediately cease all work or (2) meet with City and, subject to
City's approval, determine what work shall be required of BANK in order to
bring the Project to a reasonable termination in accordance with the request
of the City. If City shall terminate for its convenience as herein provided, City
shall compensate BANK for all work completed to date of termination.
Compensation shall not include anticipatory profit or consequential damages,
neither of which will be allowed. Any termination of the Agreement for
alleged default by BANK that is ultimately determined to be unjustified shall
automatically be deemed a termination for convenience of the City.
2. INDEMNITY
a. Definitions
For purposes of indemnification requirements, the following terms shall
have the meanings set forth below:
i. The "BANK" means and includes BANK, all its employees, agents
and assignees, and all its affiliates and subsidiaries, its
subcontractors and/or assignees and their respective servants,
agents and employees; and
ii. "Loss" means any and all loss, damage, liability or expense of any
nature whatsoever, whether incurred as a judgment, settlement,
penalty, fine or otherwise (including attorney's fees and the cost of
defense).
b. Indemnity
For purposes of this Agreement, BANK hereby agrees to indemnify,
defend and hold harmless the City, its employees and agents from any
and all "Loss" where "Loss" is caused or incurred or alleged to be caused
or incurred in whole or in part as a result of the negligence of other
actionable fault of the BANK. It is agreed as a specific element of
consideration of this Agreement that this indemnity shall apply
notwithstanding the joint, concurring or contributory or comparative fault
or negligence of the City or any third party and, further notwithstanding
any theory of law including, but not limited to, a characterization of the
24
city of
Salina
City's or any third party's joint, concurring or contributory or comparative
fault or negligence as either passive or active in nature; provided;
however, that the BANK's obligation hereunder shall not include amounts
attributable to the fault of negligence of the City. Nothing in this section
shall be deemed to impose liability on the BANK to indemnify the City for
loss when the City's negligence or other actionable fault is the sole cause
of loss.
3. INSURANCE
During the performance of this contract, the BANK agrees to maintain for the
duration of the contract, insurance coverage of the types and minimum liability as
set forth below. Before entering into a contract, the successful bank shall furnish
to the City a Certificate of Insurance verifying such coverage and identifying the
City as a loss payee on the valuable paper's coverage. The certificate holder on
the Certificate of Insurance shall be as follows:
City of Salina, Kansas
c/o City Clerk
300 West Ash Street, Room 206
Salina, KS 67402-0736
Prior to any material change or cancellation, the City will be given thirty (30)
days advanced written notice, by registered mail, to the stated address of the
certificate holder.
a. Banker's Professional Liability: $2,000,000 per occurrence and as an
annual aggregate.
b. Banker's Blanket Bond: Coverage must be provided on Banker's Blanket
Bond Standard Form 24 with a minimum limit of $3,000,000 per loss
under Insuring Agreements A -Fidelity, B -On Premises and C -In Transit.
A minimum limit of $2,000,000 shall be provided under Insuring
Agreements E -Securities. Computer Crime coverage, in an amount not
less than $2,000,000, is to be provided either by endorsement to the
Banker's Blanket Bond or by separate bond. If courier/messenger
services is to be utilized for pickup and delivery of receipts, this service
must also be covered under the Banker's Blanket Bond.
c. Cyber Liability: Vendor shall maintain cyber liability insurance covering
acts arising out of their operations or services, including data and network
liability/privacy and security liability; data breach response expense and
notification. The policy limits shall not be less than the following:
1. Each wrongful act $1,000,000
25
city of
Salina
d. Workers' Compensation and Employer's Liability
i. Workers' Compensation: Statutory
ii. Employer's Liability:
1. Bodily Injury by Accident $100,000 each accident
2. Bodily Injury by Disease $500,000 policy limit
3. Bodily Injury by Disease $100,000 each employee
e. Industry Ratings: The City will only accept coverage from an insurance
carrier which offers proof that the carrier:
i. Is licensed to do business in the state of Kansas
ii. Carries a Best's Policyholders rating of A or better; and
iii. Carries at least a Class X financial rating; or
iv. Is a company mutually agreed upon by the City and the BANK
A statement to the effect that the institution meets the insurance requirements
must be contained in the response to the proposal. A certificate of insurance,
naming the City as additional insured, shall be provided to the City by the
successful institution within fifteen (15) days after notification of award.
4. COMPLIANCE WITH EQUAL OPPORTUNITY LAWS, REGULATIONS,
RULES AND LAWS
The BANK shall remain informed of, and shall comply with, all applicable laws,
ordinances, rules, regulations, and orders of the City, County, State, Federal, or
any other public bodies, which apply to work performed under this agreement.
The BANK shall provide all necessary safeguards and protections as set forth by
the United States Department of Labor, Occupational Safety, and Health
Administration.
The BANK agrees that:
a. The BANK shall observe the provisions of the Kansas Act Against
Discrimination (K.S.A. 44-1001 et seq.) and shall not discriminate against any
person in the performance of work under the present Agreement because of
race, religion, color, sex, national origin, ancestry or age;
b. In all solicitations or advertisements for employees the BANK shall include the
phrase "equal opportunity employer" or a similar phrase to be approved by the
Kansas Human Rights Commission ("Commission");
a
City of
Salina
c. If the BANK fails to comply with the manner in which the BANK reports to the
Commission in accordance with the provisions of K.S.A. 44-1031 and
amendments thereto, the BANK shall be deemed to have breached the
present Agreement, and it may be canceled, terminated or suspended, in
whole or in part, by the contracting agency;
d. If the BANK is found guilty of a violation of the Kansas Act Against
Discrimination under a decision or order of the Commission which has become
final, the BANK shall be deemed to have breached the present Agreement,
and it may be canceled, terminated or suspended, in whole or in part, by the
contracting agency; and
e. The BANK shall include the provisions of paragraphs 1. Through 4. above in
every subcontract or purchase order so that such provisions will be binding
upon such subcontractor or vendor.
The BANK further agrees that the BANK shall abide by the Kansas Age
Discrimination In Employment Act (K.S.A. 44-111 et seq.) and the applicable
provision of the Americans with Disabilities Act (42 U.S.C. 1201 et seq.) as well
as all other federal, state and local laws, ordinances and regulations applicable to
this project and shall furnish any certification required by any federal, state or local
laws, ordinances and regulations applicable to this project and shall furnish any
certification required by any federal, state or local government agency in
connection therewith.
5. GOVERNING LAW
All contractual agreements shall be subject to, governed by, and construed
according to the laws of the State of Kansas.
6. NEGOTIATION
The City reserves the right to negotiate any and all elements of this proposal.
27
EXHIBIT A: APPLICATION TO ACT AS DEPOSITORY
CITY OF SALINA, KANSAS
REQUEST FOR PROPOSAL FOR BANKING SERVICES
BANK NAME
To: City of Salina
Request for Proposal — Banking Services
Attn: Debbie Pack
300 West Ash Street, Suite 206
Salina, KS 67402-0736
DATE
The undersigned certifies that the bank submitting this proposal is an institution eligible
to be a depository of public funds pursuant to K.S.A. 9-1401, et seq., as amended.
Please answer the following question:
Does the Bank have a main office or a branch office in the City of Salina, Kansas?
Yes No
If no, please indicate nearest location to Salina, Kansas:
The undersigned hereby proposes, if selected by the City of Salina, to furnish the
following services at the prices and terms stated, subject to all instructions, hereto. By
submitting this signed proposal, the bank officially agrees to provide the services
requested. This agreement covers all the terms, conditions and specifications of this
proposal. The prices shall remain fixed for the term of the contract.
Proposing Bank:
By:
Title:
W.,
City of
J
Salina
EXHIBIT B: REQUIRED SERVICES
CITY OF SALINA, KANSAS
REQUEST FOR PROPOSAL FOR BANKING SERVICES
Financial Information:
As of Qtr. End Date:
FDIC Insurance Coverage:
Yes No
CRA Rating:
Total Assets:
Total Equity:
Ratio — Equity divided by the Assets in
% form:
Current Net Profit Loss of Qtr.:
Profit (Loss) as a percent of Equity:
Total Deposits:
Total Time Deposits of $100,000 or
more:
Total Loans:
Total Loans 90 Days or More Past
Due:
Loan Loss Reserve as % of Total
Loan:
Total Troubled Debt:
Total Renegotiated Amount of
Troubled Debt:
Allowance for Losses on Non -Real
Estate Loans:
Capital Ratio (Tier 1 and Tier 2; three
most recent years):
Risk Based on Capital Ratio (three
most recent years):
DBE Financial Institution:
Yes No
Enclose a copy of the most recent audited financial statement
29
City of
J
Interest Calculation: The financial institution will pay the City interest on daily
collected balance in the City's account at the rate named below. The rate may be a
fixed or variable rate. If the rate is variable, state the index used and the number of
basis points above or below the index. Provide a one-year history of the index.
General Operating Account:
Fixed %:
%
Variable: Tied to T-bill rate
Basis Points Above
Other Index*
Basis Points Below
% Rate Only *State index to be used
All Other Accounts:
Fixed %:
%
Variable: Tied to T-bill rate
Basis Points Above
Other Index*
Basis Points Below
% Rate Only *State index to be used
30
The City currently maintains a $10,000,000 operating account balance with a nightly sweep.
SWEEP ACCOUNT BALANCES BY MONTH FOR 2021-2022
MONTH
ACCOUNT BALANCE
January -21
99,237,745
February -21
62,158,726
March -21
60,598,547
April -21
70,620,221
May -21
78698,146
June -21
73,048,136
July -21
75,406,230
August -21
74,537,086
September -21
68,161,173
October -21
68,227,236
November -21
69,331,261
December -21
69,126,048
January -22
78,768,655
February -22
78,748,357
March -22
79,602,367
April -22
82,679,598
May -22
80,631,882
June -22
90,300,791
July -22
90,554,975
August -22
86,122,359
September -22
80,693,942
31
City of
J
salillllck
PRICING WORKSHEET
Account Services Per Item Monthly Fee
Charge
Please provide list all costs that apply to services offered.
32
City of
J
Salina
EXHIBIT C: OPTIONAL SERVICES
CITY OF SALINA, KANSAS
REQUEST FOR PROPOSAL FOR BANKING SERVICES
Use Exhibit C to submit your proposal for the optional services specified in Section V of this RFP. This
includes:
1. Courier and Armored Car Services
2. Check Issuance
33
City of
J
saliva
EXHIBIT D: OTHER VALUE-ADDED SERVICES
CITY OF SALINA, KANSAS
REQUEST FOR PROPOSAL FOR BANKING SERVICES
Use Exhibit D to submit your proposal for other services not specified by this RFP.
34
Analysis of Banking Proposals
Assumptions:
Earnings
• Monthly rate of proposed index rate +/- adjustment
• Date of rate 11/21/2022
• Funds on Deposit - $25,000,000 average monthly balance
• Annual Earnings calculated
+ Minimum Balance and alternative rate
+ Remaining Balance on proposed discounted rate
X 12 months
= Total Annual Earnings
Expenses
• Average service usage by the City per month
• Cost of each service per proposal
Q
per month :.
Acct Maint
1
ACH Edit Stmt fee
1
ACH File
23
ACH Notification of
3
ACH originated items
5467
ACH Origination Maint
1
ACH Positive Pay Maint
1
ACH return debits
8
ACH positive pay
4
Credits
156
Deposited items
6530
Checks/ACH Debits/Other
693
On-line banking per acct
1
Incoming domestic wire
1
EDI remittance report
1
Online banking per acct
1
Positive pay no recon
1
P ositive pay no recon
553
Check positive pay
2
returned deposited items
5
service chargeable debits
5
lockbox monthly maint
1
image transmission main
1
lockbox online access
1
Monthly Maint
1
lockbox deposits
22
lockbox deposited items
6530
Multiple item processing
6530
Lockbox online viewing>
1
image capture checks
6530
electronic credits
543
Investment/ICS Sweep
1
Garda
1
Itemized Earnings Proposals:
*Credit to offset fees only
Annual Fees:
Bennington
Equity #1
Equity #2
Sunflower
UMB
Total Annual Fees
$118,740*
62,849.16
62,849.16
0**
55,420.74
Minimum Balance
$5,000,000
$1-$4.99M
N/A
$6,500,000
N/A
Rate on Min Bal
0%
1.25%
1%*
>$5,M
2.5%
Remaining Funds
$20,000,000
525,000,000
$18,500,000
$25,000,000
Index
3 month MIP
less 20 bps
(.20%)
Fixed Rate
Lower end
Fed Funds
less 10 bps
(.10%)
Upper Fed
Funds less
2.35%
Upper Fed Funds
less 80 bps (.8%)
Index on 11/21/22
3.97%
3.75%-4.0%
3.75%-4.0%
3.75%-4.0%
Discounted Rate
3.77%
3.65%
1.65%
3.2%
Floor Rate
.20%
.25%
.25%
Annual Earnings on
Min Bal
0
N/A
N/A
0
N/A
Annual Earnings on
Remaining Funds
754,000
625,000
912,500
305,250
800,000
Total Annual
Earnings
$754,000
$625,000
$912,500
$305,250
$800,000
*Credit to offset fees only
Annual Fees:
*Fees waived with exception of Lock Box, Credit Cards and Treasury &Wealth Management
**Fees covered with credit on minimum balance
Net Proceeds:
Bennington
Equity #1Equity
#2
Sunflower
UMB
Total Annual Fees
$118,740*
62,849.16
62,849.16
0**
55,420.74
*Fees waived with exception of Lock Box, Credit Cards and Treasury &Wealth Management
**Fees covered with credit on minimum balance
Net Proceeds:
Bennington
Equity #1
Equity #2
Sunflower
UMB
Net Annual Proceeds
$635,260.00
$562,150.84
$849,650.84
$305,250
$744,579.26
RESOLUTION NUMBER 23-8106
A RESOLUTION DESIGNATING THE OFFICIAL DEPOSITORIES FOR ALL MONEYS OF
THE CITY OF SALINA, KANSAS, PROVIDING AUTHORIZATION FOR WIRE
TRANSFERS, DESIGNATING AUTHORIZED CHECK SIGNERS, AUTHORIZING
SECURITIES PURCHASES AND/OR SELL AND REPEALING RESOLUTION NUMBER 19-
7773.
WHEREAS, K.S.A. 9-1401 requires that all municipalities
depositories of the governing body's funds,
WHEREAS, K.S.A. 9-1401 also states that banks, savin$`s'ai
which have main or branch offices in the county in which atl or
K
be designated as such official depositories, and
by official action, all eligible
associations and savings banks
the municipality is located shall
WHEREAS, Bennington State Bank, Equity Bank, TTMB Bank, Sunflower Bail,, The Bank of Tescott,
Central National Bank, Solomon State Bank, Capi b "Pedeial SiYJngs, Bank VI (a Division of Plains
State Bank), First Bank Kansas, and Exchange Bank are autNi"i ed depositories'fo municipal funds,
and � ..
WHEREAS, the City Manager, Deputy City. Manager, Finance,"Dtfector and Deputy Finance Director
are responsible for the daily;finapcial operations of the Ctyyof Sa1ma:SO NOW, THEREFORE
BE IT RESOLVED by the Goverriing Bodyo'the`Czt of
Section 1. That all public moneys :,received bythe City of Salina be deposited in Bennington State
Bank, Equity Bank, UMB'�Bankr .Sunhower Bank, The Bank of Tescott, Central National Bank,
Solomon State Bank;:Capitol Federal Savings, Bank VI, First Bank Kansas, or Exchange Bank, all
of which are authoriied,deposil les of municipal funds, located in the City of Salina, Saline
Countv'Kansas.
Section 2. `,Thathe City Manager, Deputy City Manager, Finance Director, Deputy Finance
Director and Human Resource Director are authorized to approve ACH and wire transfer payments
on behalf of the Citvof Salina
Section 3. That the City',IVaager, Deputy City Manager, Finance Director and Deputy Finance
Director may authorize check signers and access to the various accounts required by the City of
Salina.
Section 4. That the City Manager, Deputy City Manager, Finance Director and Deputy Finance
Director are authorized to approve the purchase and/or sell of securities for the account of the City
of Salina.
Section 5. That Resolution Number 19-7773 is hereby repealed.
Adopted by the Board of Commissioners and signed by the Mayor this 6t" day of February, 2023.
(SEAL)
ATTEST:
JoVonna Rutherford, City Clerk
Michael L. Hoppock., Mayor